Housing Industry Not Key To Recovery
Home sales have been seeing increases and has hit the highest in terms of first quarter sales since the housing crisis in 2008. Many people are hoping that this increase in housing sales can lead to the further recovery of our economy. Many people believed that the increase in house sales can improve the economy by encouraging spending as the worth of their homes begin to increase, but Amir Sufi says that those who were spending large amounts of money during the housing boom are not the ones that are causing the increase in housing sales, in order words, they are not the ones buying these houses.
I agree with Sufi that the housing industry may not be the key to economic recovery, since there are also many other factors that also have a large impact on the economy. The U.S. economy is very complex, so it is difficult to say that one specific factor would help push our economy back up. Even if housing sales show a large increase, investors may not begin to take larger caution into investing in this industry due to the past crisis.
Written by: Jessica Ho
Source: The Wall Street Journal